BMW's development boss has revealed the company is unlikely to offer a competitor to the Audi A3 Sedan and Mercedes CLA.

Speaking to Wards Auto, Dr. Herbert Diess [BMW board member] said the company sees little need for a sedan smaller than the 3-Series in the United States. He went on to say he sees a “high risk of substitution” where customers would buy the smaller car - presumably the 1-Series sedan or 2-Series Gran Coupe - instead of a more expensive model like the 3-Series.

Speaking of small cars, Diess confirmed the company will launch the 2-Series Convertible “toward the end of the year.” He declined to go into specifics but the model will likely share engines with the 2-Series Coupe.

When asked about the status of the jointly-developed BMW-Toyota sports car, he said "It’s a complex task. We need to decide which cars would they be and when they would launch." Diess went on to say "We think it makes sense for both companies, but it is a car architecture that has to suit both companies. I think we will have a final decision in a few months.”